<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Reliance Industries will open its share buyback from February 1, and close the offer on January 19 next year, it said in an advertisement in the Times of India newspaper on Tuesday.<br><br>Reliance, India's biggest company by market value, said late last week it will spend up to Rs 10,500 crore to buy back shares at a maximum price of 870 rupees each, or about 10 per cent premium over its current share price, as it looks to prop up its underperforming shares.<br><br>It will buy back up to 120 million shares, or 3.7 per cent of outstanding equity. Its controlling shareholders, who own 44.7 per cent of the equity, will not participate in the offer.<br><br>Shares fell 2.7 per cent on Monday after the energy major posted its first drop in quarterly profit in more than two years. By 0423 GMT on Tuesday, the stock was up 1.8 per cent at 785.45 rupees.<br><br>Reliance's market value tumbled 35 per cent in 2011, mainly because of worries that falling output from its offshore gas fields would hurt its long-term growth.<br><br>The stock underperformed the main Mumbai market, which fell nearly 25 per cent in the same period.<br><br>The share buyback is expected to increase shareholder value by reducing the number of shares and increasing earnings per share, Reliance said in the advertisement.<br><br>This is the company's first share buyback since 2005 and the biggest ever in India.<br><br>Citigroup and Bank of America-Merrill Lynch are the managers for the buyback offer.<br><br>(Reuters)</p>